2004 (12) TMI 24 - ALLAHABAD HIGH COURT

Whether Tribunal was right in law in holding that the notices issued under section 148 addressed as M/s. Shri Nath Suresh Chand Ram Naresh, karta Shri Nath, were valid notices to assess the income of the HUF of M/s. Munnalal Motilal or Motilal Shri Nath or its successors? - Whether Tribunal was right in law in holding that the infirmity in the notices issued under section 148 of the Income-tax Act, 1961 was cured under section 292B of the above Act?" - it is necessary to understand the importance of a valid notice and the nature of reassessment proceedings, first. As already discussed in the earlier part of this judgment that service of a valid notice is mandatory to initiate reassessment proceedings under section 147 -In view of the above, the Tribunal has wrongly held that section 292B of the Act will have application to the facts of the present case. The said section condones the invalidity which arises merely by reason of any mistake, defect or omission in a notice, if in substance and effect it is in conformity with or according to the intent and purpose of the Act. Questions are answered in the negative, i.e., against the Revenue and in favour of the assessee